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INPUT Expects $20 Billion Rush in Federal IT Spending in Q4 of Government Fiscal Year 2007

INPUT Expects $20 Billion Rush in Federal IT Spending in Q4 of Government Fiscal Year 2007

RESTON, Va., Aug. 22 /PRNewswire/ -- Spending on information technology in the final months of the U.S. federal government's fiscal year 2007 is expected to reach over $20 billion -- over 33% of the 2007 total federal IT spend -- continuing the trend toward a fourth quarter spending spree, according to a recent report released by INPUT, the authority on government business. The report suggests that IT spending by agencies has been steadily shifting from other fiscal quarters to the fourth quarter over the last ten years.

"Over the last decade we have seen a consistent move toward agencies spending thirty percent or more of their annual IT budgets in the final quarter of the fiscal year," says John Slye, manager, federal industry analysis for INPUT. "The spending among the ten agencies with the largest IT budgets alone could translate into roughly $17 billion," Slye added.

The federal government fiscal year ends September 30th, and is often marked among vendors receiving a flurry of orders as agencies use up remaining funds. According to the report, this trend appears to be fueled in part by the nature of the appropriations process. "Agencies are instilled with a use-it- or-lose-it mentality that drives them to spend their remaining budgets before the end of the year," Slye said, referring to the common belief that agencies not spending their full budgets receive less funding in the future. "We've also seen an impact from the recent history of delayed appropriations bills forcing agencies to spend their budgets in a narrower window of time," Slye added.

The report suggests that the increased purchasing activity in the fourth quarter favors established vendors who have put in the up-front work of relationship building and establishing their value. "Federal agencies tend to look to their established vendors when they have money to spend in a hurry," Slye said.

INPUT's Federal Fourth Quarter Spending Spree: Where the Money Is and How to Get It? INPUT/Output(R) report, is available to INPUT members. For more information on becoming a member, call 1-888-99-INPUT or submit an online information request.


INPUT is the authority on government business. Established in 1974, INPUT helps companies develop federal, state, and local government business and helps public sector organizations achieve their objectives. Over 1,300 member organizations, including small specialized companies, new entrants to the public sector, and the largest government contractors and agencies, rely on INPUT for the latest and most comprehensive procurement and market information, consulting, powerful sales management tools, and educational & networking events. For more information about INPUT, visit http://www.input.com/ or call 703-707-3500.

Proper use of name is INPUT Media Contact: Meredith Lawrence [email protected] 703-707-3687


CONTACT: Meredith Lawrence, +1-703-707-3687, [email protected]

Web site: http://www.input.com/

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